Record fourth quarter total revenue of $145
million Record full year total revenue of $464 million Annual
Recurring Revenue (ARR) of $274 million grew 43% year-over-year
CyberArk, (NASDAQ: CYBR), the global leader in identity
security, today announced record financial results for the fourth
quarter and year ended December 31, 2020.
“Our record fourth quarter results demonstrate the strength of
demand across our identity security platform that has a foundation
in Privileged Access Management (PAM),” said Udi Mokady, CyberArk
Chairman and CEO. “Digital transformation, cloud migration and work
from anywhere are creating a heightened sense of urgency to
implement our solutions across DevSecOps, PAM and Access. As
organizations embrace the flexibility and agility of cloud and
automation, we are empowering customers to confidently and securely
drive their mission critical strategies forward.”
Continued Mokady, “Our fourth quarter results, including another
record for SaaS and subscription bookings, put us in a great
position as we begin actively transitioning our business to a
recurring revenue model in the first quarter of 2021, shifting our
sales from perpetual licenses to recurring subscriptions. As we
look ahead, we continue to see strong industry tailwinds, including
increasing awareness of privileged access as a primary attack
vector. We are the clear market leader in PAM and have set the
standard for innovation with our differentiated identity security
portfolio. We are confident that our identity security strategy and
our comprehensive subscription transformation program will deliver
long-term growth and profitability, creating significant value for
CyberArk, our customers, partners and shareholders.”
Financial Highlights for the Fourth Quarter Ended December
31, 2020
Revenue:
- Total revenue was $144.5 million.
- License revenue was $80.8 million.
- Maintenance and Professional Services revenue was $63.7
million.
Operating Income:
- GAAP operating income was $18.8 million, and non-GAAP operating
income was $39.9 million.
Net Income:
- GAAP net income was $12.1 million, or $0.30 per diluted share,
and non-GAAP net income was $32.6 million, or $0.82 per diluted
share.
Financial Highlights for the Full Year Ended December 31,
2020
Revenue:
- Total revenue was $464.4 million.
- License revenue was $226.1 million.
- Maintenance and Professional Services revenue was $238.3
million.
Operating Income:
- GAAP operating income was $6.0 million, and non-GAAP operating
income was $91.4 million.
Net Income (Loss):
- GAAP net loss was $(5.8) million, or $(0.15) per basic and
diluted share, and non-GAAP net income was $81.1 million, or $2.05
per diluted share.
The tables at the end of this press release include a
reconciliation of the following non-GAAP financial measures to
their most directly comparable GAAP financial measures: non-GAAP
gross profit, non-GAAP operating income, non-GAAP net income and
free cash flow. An explanation of these measures is also included
below under the heading “Non-GAAP Financial Measures.”
Balance Sheet and Cash Flow From Operations:
- As of December 31, 2020, CyberArk had $1.2 billion in cash,
cash equivalents, marketable securities and short-term deposits.
This compares to $1.1 billion in cash, cash equivalents, marketable
securities and short-term deposits as of December 31, 2019.
- As of December 31, 2020, total deferred revenue was $242.5
million, a 27% increase from $190.4 million at December 31,
2019.
- During 2020, the Company generated $106.8 million in net cash
provided by operating activities compared to $141.7 million in
2019.
Annual Recurring Revenue (ARR):
- Annual Recurring Revenue (ARR) was $274 million, an increase of
43% from $192 million at December 31, 2019.
Business Outlook Based on information available as of
February 11, 2021, CyberArk is issuing guidance for the first
quarter and full year 2021 as indicated below.
First Quarter 2021:
- Total revenue is expected to be in the range of $106.0 million
to $112.0 million.
- Non-GAAP operating income (loss) is expected to be in the range
of an operating loss of $(2.5) million to operating income of $2.5
million.
- Non-GAAP net income (loss) per share is expected to be in the
range of a net loss of $(0.03) per basic and diluted share to net
income of $0.07 per diluted share.
- Assumes 39.2 million weighted average basic and diluted shares
and 40.7 million weighted average diluted shares.
Full Year 2021:
- Total revenue is expected to be in the range of $484.0 million
to $496.0 million.
- Non-GAAP operating income is expected to be in the range of
$20.0 million to $30.0 million.
- Non-GAAP net income per share is expected to be in the range of
$0.45 to $0.64 per diluted share.
- Assumes 40.8 million weighted average diluted shares.
Conference Call Information In conjunction with this
announcement, CyberArk will host a conference call today, February
11, 2021, at 8:30 a.m. Eastern Time (ET) to discuss the company’s
fourth quarter and year end financial results and its business
outlook. To access this call, dial +1 (833) 968-2251 (U.S.) or +1
(778) 560-2670 (international). The conference ID is 6893829.
Additionally, a live webcast of the conference call will be
available via the “Investor Relations” section of the company’s
website at www.cyberark.com.
Following the conference call, a replay will be available for
one week at +1 (800) 585-8367 (U.S.) or (416) 621-4642
(international). The replay pass code is 6893829. An archived
webcast of the conference call will also be available in the
“Investor Relations” section of the company’s website at
www.cyberark.com.
About CyberArk CyberArk (NASDAQ: CYBR) is the global
leader in Identity Security. Centered on privileged access
management, CyberArk provides the most comprehensive security
offering for any identity – human or machine – across business
applications, distributed workforces, hybrid cloud workloads, and
throughout the DevOps lifecycle. The world’s leading organizations
trust CyberArk to help secure their most critical assets. To learn
more about CyberArk, visit www.cyberark.com.
Copyright © 2021 CyberArk Software. All Rights Reserved. All
other brand names, product names, or trademarks belong to their
respective holders.
Key Performance Indicators and Non-GAAP Financial
Measures
Annual Recurring Revenue (ARR)
- Annual Recurring Revenue (ARR) is defined as the annualized
value of active SaaS, subscription or term-based license and
maintenance contracts related to perpetual licenses in effect at
the end of the reported period.
Non-GAAP Financial Measures CyberArk believes that the
use of non-GAAP gross profit, non-GAAP operating income, non-GAAP
net income and free cash flow is helpful to our investors. These
financial measures are not measures of the Company’s financial
performance under U.S. GAAP and should not be considered as
alternatives to gross profit, operating income, net income (loss)
or net cash provided by operating activities or any other
performance measures derived in accordance with GAAP.
- Non-GAAP gross profit is calculated as GAAP gross profit
excluding share-based compensation expense, acquisition related
expenses and amortization of intangible assets related to
acquisitions.
- Non-GAAP operating income is calculated as GAAP operating
income excluding share-based compensation expense, acquisition
related expenses, facility exit and transition costs and
amortization of intangible assets related to acquisitions.
- Non-GAAP net income is calculated as GAAP net income (loss)
excluding share-based compensation expense, acquisition related
expenses, amortization of intangible assets related to
acquisitions, facility exit and transition costs, amortization of
debt discount and issuance costs, intra-entity IP transfer tax
effect, net and the tax effect of non-GAAP adjustments.
- Free cash flow is calculated as net cash provided by operating
activities less purchase of property and equipment.
The Company believes that providing non-GAAP financial measures
that are adjusted by, as applicable, share-based compensation
expense, acquisition related expenses, amortization of intangible
assets related to acquisitions, facility exit and transition costs,
non-cash interest expense related to the amortization of debt
discount and issuance costs, intra-entity IP transfer tax effect,
net the tax effect of the non-GAAP adjustments and purchase of
property and equipment allows for more meaningful comparisons of
its period to period operating results. Share-based compensation
expense has been, and will continue to be for the foreseeable
future, a significant recurring expense in the Company’s business
and an important part of the compensation provided to its
employees. Share based compensation expense has varying available
valuation methodologies, subjective assumptions and a variety of
equity instruments that can impact a company’s non-cash expense.
The Company believes that expenses related to its acquisitions,
amortization of intangible assets related to acquisitions, facility
exit and transition costs, intra-entity IP transfer tax effect, net
and non-cash interest expense related to the amortization of debt
discount and issuance costs do not reflect the performance of its
core business and impact period-to-period comparability. The
Company believes free cash flow is a liquidity measure that, after
the purchase of property and equipment, provides useful information
about the amount of cash generated by the business.
Non-GAAP financial measures may not provide information that is
directly comparable to that provided by other companies in the
Company’s industry, as other companies in the industry may
calculate non-GAAP financial results differently, particularly
related to non-recurring, unusual items. In addition, there are
limitations in using non-GAAP financial measures as they exclude
expenses that may have a material impact on the Company’s reported
financial results. The presentation of non-GAAP financial
information is not meant to be considered in isolation or as a
substitute for the directly comparable financial measures prepared
in accordance with U.S. GAAP. CyberArk urges investors to review
the reconciliation of its non-GAAP financial measures to the
comparable U.S. GAAP financial measures included below, and not to
rely on any single financial measure to evaluate its business.
Guidance for non-GAAP financial measures excludes, as
applicable, share-based compensation expense, acquisition related
expenses, amortization of intangible assets related to
acquisitions, facility exit and transition costs, non-cash interest
expense related to the amortization of debt discount and issuance
costs, intra-entity IP transfer tax effect, net and the tax effect
of the non-GAAP adjustments. A reconciliation of the non-GAAP
financial measures guidance to the corresponding GAAP measures is
not available on a forward-looking basis due to the uncertainty
regarding, and the potential variability and significance of, the
amounts of share-based compensation expense, amortization of
intangible assets related to acquisitions, and the non-recurring
expenses that are excluded from the guidance. Accordingly, a
reconciliation of the non-GAAP financial measures guidance to the
corresponding GAAP measures for future periods is not available
without unreasonable effort.
Cautionary Language Concerning Forward-Looking Statements
This release contains forward-looking statements, which express the
current beliefs and expectations of CyberArk’s (the “Company”)
management. In some cases, forward-looking statements may be
identified by terminology such as “believe,” “may,” “estimate,”
“continue,” “anticipate,” “intend,” “should,” “plan,” “expect,”
“predict,” “potential” or the negative of these terms or other
similar expressions. Such statements involve a number of known and
unknown risks and uncertainties that could cause the Company’s
future results, performance or achievements to differ significantly
from the results, performance or achievements expressed or implied
by such forward-looking statements. Important factors that could
cause or contribute to such differences include risks relating to:
the duration and scope of the COVID-19 pandemic and the impact of
the pandemic and actions taken in response, on global and regional
economies and economic activity and the resulting impact on the
demand for the Company’s solutions and on its expected revenue
growth rates and costs; the Company’s ability to adjust its
operations in response to impacts from the COVID-19 pandemic;
difficulties predicting future financial results, including due to
impacts from the COVID-19 pandemic; the Company’s plan to begin
actively transitioning its business to a recurring revenue model in
2021; changes to the drivers of the Company’s growth; the Company’s
ability to sell into existing and new industry verticals; the
Company’s sales cycles and multiple licensing models may cause
results to fluctuate; the Company’s ability to sell into existing
customers; potential changes in the Company’s operating and net
profit margins and the Company’s revenue growth rate; the Company’s
ability to successfully find, complete, fully integrate and achieve
the expected benefits of future acquisitions, including the
Company’s ability to integrate and achieve the expected benefits of
Idaptive; real or perceived shortcomings, defects or
vulnerabilities in the Company’s solutions or internal network
systems; the Company’s ability to hire qualified personnel; the
Company’s ability to expand its channel partnerships across
existing and new geographies; the Company’s ability to further
diversify its product deployments and licensing options; and other
factors discussed under the heading “Risk Factors” in the Company’s
most recent annual report on Form 20-F filed with the Securities
and Exchange Commission. Forward-looking statements in this release
are made pursuant to the safe harbor provisions contained in the
Private Securities Litigation Reform Act of 1995. These
forward-looking statements are made only as of the date hereof, and
the Company undertakes no obligation to update or revise the
forward-looking statements, whether as a result of new information,
future events or otherwise.
CYBERARK SOFTWARE LTD. Consolidated Statements of
Operations U.S. dollars in thousands (except per share
data) (Unaudited)
Three Months Ended
Twelve Months Ended
December 31,
December 31,
2019
2020
2019
2020
Revenues: License
$ 76,526
$ 80,821
$ 237,879
$ 226,113
Maintenance and professional services
53,138
63,698
196,016
238,318
Total revenues
129,664
144,519
433,895
464,431
Cost of revenues: License
2,801
5,845
10,569
19,341
Maintenance and professional services
14,048
16,863
52,046
63,230
Total cost of revenues
16,849
22,708
62,615
82,571
Gross profit
112,815
121,811
371,280
381,860
Operating expenses: Research and
development
20,930
26,659
72,520
95,426
Sales and marketing
52,939
61,038
184,168
219,999
General and administrative
16,005
15,325
52,308
60,429
Total operating expenses
89,874
103,022
308,996
375,854
Operating income
22,941
18,789
62,284
6,006
Financial income (expenses), net
2,394
(2,733)
7,800
(6,395)
Income (loss) before taxes on income
25,335
16,056
70,084
(389)
Taxes on income
(4,599)
(4,002)
(7,020)
(5,369)
Net income (loss)
$ 20,736
$ 12,054
$ 63,064
$ (5,758)
Basic net income (loss)
per ordinary share
$ 0.55
$ 0.31
$ 1.68
$ (0.15)
Diluted net income (loss) per ordinary share
$ 0.53
$ 0.30
$ 1.62
$ (0.15)
Shares used in computing net income (loss)
per ordinary shares, basic
37,957,899
38,913,923
37,586,387
38,628,770
Shares used in computing net income (loss) per
ordinary shares, diluted
39,148,849
39,938,780
38,890,108
38,628,770
Share-based Compensation Expense:
Three Months Ended
Twelve Months Ended
December 31,
December 31,
2019
2020
2019
2020
Cost of revenues
$ 1,802
$ 2,409
$ 5,690
$ 8,734
Research and development
3,347
4,085
10,960
14,691
Sales and marketing
6,464
6,996
20,976
28,220
General and administrative
6,418
4,984
17,891
20,204
Total share-based compensation expense
$ 18,031
$ 18,474
$ 55,517
$ 71,849
CYBERARK SOFTWARE LTD.
Consolidated Balance
Sheets
U.S. dollars in
thousands
(Unaudited)
December 31,
December 31,
2019
2020
ASSETS CURRENT ASSETS: Cash and cash equivalents
792,363
499,992
Short-term bank deposits
140,067
256,143
Marketable securities
132,412
196,856
Trade receivables
72,953
93,128
Prepaid expenses and other current assets
8,406
15,312
Total current assets
1,146,201
1,061,431
LONG-TERM ASSETS: Marketable securities
54,408
202,190
Property and equipment, net
16,472
18,537
Intangible assets, net
9,143
23,676
Goodwill
82,400
123,717
Other long-term assets
72,091
99,992
Deferred tax asset
24,451
32,809
Total long-term assets
258,965
500,921
TOTAL ASSETS
$ 1,405,166
$ 1,562,352
LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT
LIABILITIES: Trade payables
$ 5,675
$ 8,250
Employees and payroll accruals
41,345
52,169
Accrued expenses and other current liabilities
27,132
24,915
Deferred revenues
118,519
161,679
Total current liabilities
192,671
247,013
LONG-TERM LIABILITIES: Convertible senior notes, net
485,119
502,302
Deferred revenues
71,836
80,829
Other long-term liabilities
31,408
24,920
Total long-term liabilities
588,363
608,051
TOTAL LIABILITIES
781,034
855,064
SHAREHOLDERS' EQUITY: Ordinary shares of NIS 0.01 par value
99
101
Additional paid-in capital
396,437
481,992
Accumulated other comprehensive income
818
4,175
Retained earnings
226,778
221,020
Total shareholders' equity
624,132
707,288
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
$ 1,405,166
$ 1,562,352
CYBERARK SOFTWARE LTD.
Consolidated Statements of
Cash Flows
U.S. dollars in
thousands
(Unaudited)
Twelve Months Ended
December 31,
2019
2020
Cash flows from operating activities: Net income
(loss)
$ 63,064
$ (5,758)
Adjustments to reconcile net income to net cash provided by
operating activities: Depreciation and amortization
10,646
15,475
Amortization of premium and accretion of discount on marketable
securities, net
(47)
3,068
Share-based compensation
55,517
71,849
Deferred income taxes, net
(6,974)
(1,988)
Increase in trade receivables
(24,522)
(17,315)
Amortization of debt discount and issuance costs
1,966
17,183
Increase in prepaid expenses and other current and long-term assets
(14,321)
(20,487)
Increase in trade payables
1,571
558
Increase in short-term and long-term deferred revenues
40,821
45,397
Increase in employees and payroll accruals
7,337
7,846
Increase (decrease) in accrued expenses and other current and
long-term liabilities
6,652
(9,059)
Net cash provided by operating activities
141,710
106,769
Cash flows from investing activities: Investment in
short and long term deposits
(33,961)
(123,054)
Investment in marketable securities
(165,714)
(403,279)
Proceeds from maturities of marketable securities
63,489
189,723
Purchase of property and equipment
(7,036)
(7,174)
Payments for business acquisitions, net of cash acquired
-
(68,603)
Net cash used in investing activities
(143,222)
(412,387)
Cash flows from financing activities: Proceeds from
withholding tax related to employee stock plans
1,155
1,069
Proceeds from the issuance of convertible senior notes, net of
issuance costs
560,107
-
Purchase of capped calls
(53,648)
-
Proceeds from exercise of stock options
24,428
12,180
Net cash provided by financing activities
532,042
13,249
Increase (decrease) in cash, cash equivalents and restricted
cash
530,530
(292,369)
Cash, cash equivalents and restricted cash at the beginning
of the period
261,883
792,413
Cash, cash equivalents and restricted cash at the end of the
period
$ 792,413
$ 500,044
CYBERARK SOFTWARE LTD. Reconciliation of GAAP Measures to
Non-GAAP Measures U.S. dollars in thousands (except per
share data) (Unaudited) Reconciliation of Net
cash provided by operating activities to Free cash flow:
Three Months Ended
Twelve Months Ended
December 31,
December 31,
2019
2020
2019
2020
Net cash provided by operating activities
$ 53,113
$ 38,948
$ 141,710
$ 106,769
Less: Purchase of property and equipment
(1,647)
(2,237)
(7,036)
(7,174)
Free cash flow
$ 51,466
$ 36,711
$ 134,674
$ 99,595
GAAP net cash used in investing activities
$ (119,768)
$ (52,121)
$ (143,222)
$ (412,387)
GAAP net cash provided by financing activities
$ 511,985
$ 6,084
$ 532,042
$ 13,249
Reconciliation of Gross Profit to Non-GAAP Gross
Profit:
Three Months Ended
Twelve Months Ended
December 31,
December 31,
2019
2020
2019
2020
Gross profit
$ 112,815
$ 121,811
$ 371,280
$ 381,860
Plus: Share-based compensation - License, Maintenance &
professional services
1,802
2,409
5,690
8,734
Amortization of intangible assets - License
968
2,415
5,029
8,244
Acquisition related expenses
-
-
-
447
Non-GAAP gross profit
$ 115,585
$ 126,635
$ 381,999
$ 399,285
Reconciliation of Operating Income to Non-GAAP Operating
Income:
Three Months Ended
Twelve Months Ended
December 31,
December 31,
2019
2020
2019
2020
Operating income
$ 22,941
$ 18,789
$ 62,284
$ 6,006
Plus: Share-based compensation
18,031
18,474
55,517
71,849
Amortization of intangible assets - Cost of revenues
968
2,415
5,029
8,244
Amortization of intangible assets - Sales and marketing
144
205
576
683
Acquisition related expenses
-
-
-
4,526
Facility exit and transitions costs
-
-
-
140
Non-GAAP operating income
$ 42,084
$ 39,883
$ 123,406
$ 91,448
Reconciliation of Net Income (Loss) to Non-GAAP Net
Income:
Three Months Ended
Twelve Months Ended
December 31,
December 31,
2019
2020
2019
2020
Net income (loss)
$ 20,736
$ 12,054
$ 63,064
$ (5,758)
Plus: Share-based compensation
18,031
18,474
55,517
71,849
Amortization of intangible assets - Cost of revenues
968
2,415
5,029
8,244
Amortization of intangible assets - Sales and marketing
144
205
576
683
Acquisition related expenses
-
-
-
4,526
Facility exit and transitions costs
-
-
-
140
Amortization of debt discount and issuance costs
1,966
4,352
1,966
17,183
Taxes on income related to non-GAAP adjustments
(4,014)
(4,851)
(18,251)
(20,807)
Intra-entity IP transfer tax effect, net
-
-
-
5,036
Non-GAAP net income
$ 37,831
$ 32,649
$ 107,901
$ 81,096
Non-GAAP net income per share Basic
$ 1.00
$ 0.84
$ 2.87
$ 2.10
Diluted
$ 0.97
$ 0.82
$ 2.77
$ 2.05
Weighted average number of shares Basic
37,957,899
38,913,923
37,586,387
38,628,770
Diluted
39,148,849
39,938,780
38,890,108
39,553,203
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210211005439/en/
Investor Relations Contact: Erica Smith CyberArk
617-558-2132 ir@cyberark.com
Media Contact: Liz Campbell CyberArk 617-558-2191
press@cyberark.com
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